Equal Access to Justice Act

Under current law, small-business owners who are wrongly accused of violating laws or regulations often must pay attorney fees and other costs to extricate themselves from government penalties. The Equal Access to Justice Act is intended to help small businesses recover attorney fees when they prevail in a suit against the government. However, EAJA only allows recovery if the agency fails to show that the action was substantially justified. Unfortunately, this loophole in the law allows agencies to avoid granting reimbursements, and as a result, EAJA applications are rarely filed. NFIB supports legislation that would close the loophole and truly reimburse innocent small-business owners who successfully defend themselves against wrongful government prosecution.